April 4, 2017
In the city, you don’t build, you hustle.You don’t own, you rent. Nothing is permanent because a stationary target is an easy target.
Instead you make what you can and you move onto the next thing. If you can shift the burden onto someone else, all the better. That’s how the game is played because in the city, everyone is a stranger. That’s the new economy we are experiencing. No one thinks about the long term, because that’s a sucker’s play. The money is in the short hustle, You make your money and move on. The game is to pick the fruit, squeeze out all the juice and then toss away the rest, leaving it for a sucker to clean up later. The housing bubble is a good example. Everyone involved knew it was a grift. They are too smart to not have known. The game was to make money and not be the sucker left holding the bag. - - No Footprints | The Z Blog
Posted by gerardvanderleun at April 4, 2017 8:10 AM. This is an entry on the sideblog of American Digest: Check it out.
In early 2001 a guy hired me to design a small house for him. It was 1200 sf of living area. 3 bedrooms, 2 baths, 2 car garage, 10'x16' screened in porch in the rear. It would be built on an 80'x125' lot in Cape Coral, FL.
His buddy had perfect credit and pulled $5k out of each of 10 visa cards with the intent to make minimum payments on them til the house sold.
They bought the lot for $3k and pulled permits on the house and signed with the most successful real estate company in the state.
Less than 30 days later a northern tourist bought the house, listed at $99k because it was priced way lower than the next higher priced new home on the market. No, the home was not completed yet, the foundation was in, and the components for the house were all bottom line builder grade stuff.
Those 2 guys took their profit, paid off the credit cards and started another home identical to the first, 2 blocks away. Meanwhile that savvy northern tourist relisted the (uncompleted) house he had just bought with the same realtor but for $159k and guess what? In 2 weeks it sold....to another northern tourist, again, because it was competitively priced.
Unbelievably that home sold a total of 6 times BEFORE the construction was completed with the final selling price at just over $300k.
The 2 original guys?
They went on to become the largest home builder in FL and were jamming 5000 cheap cribs in the dirt per year by 2006.
In 2007 they sold the company to the largest homebuilder in the country and both of them bought giant sailboats and moved to the west coast of Mexico where coins are worth quadruple.
2 years ago they went back to Cape Coral to visit family and friends and on a Saturday night after extensive partying on $20 pink umbrella drinks at all the most expensive dives, on the way back to their hotel they missed a hairpin curve and blew up a million dollar Ferrari and both of them were instantly incinerated.
For them the bubble finally popped.
Posted by: ghostsniper at April 4, 2017 2:23 PM